Q&As

From 1 July 2021, in order to claim under the Coronavirus Job Retention Scheme (CJRS), does the employer have to keep paying the furloughed employee 80% of their usual wages (subject to the £2,500 cap), or can they pay them the amount of the reduced grant, ie 70% of wages subject to the £2,187.50 cap, without it affecting their ability to claim from HMRC?

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Published by a LexisNexis Employment expert
Published on: 06 July 2021
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The HMRC Policy paper: Changes to the Coronavirus Job Retention Scheme from July 2021 to which you refer states that, from 1 July 2021, the level of the Coronavirus Job Retention Scheme (CJRS) grant will be reduced and employers will be asked to contribute towards the cost of their furloughed employees’ Wages. To be eligible for the grant, the employer must continue to pay its furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.

As set out in the table in

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Key definition:
Retention definition
What does Retention mean?

Retention is a percentage of the sums payable by way of interim payment deducted by the employer and held until completion. Half of the retention is released on practical completion, the other half on the expiry of the defects liability period or issuance of a certificate of making good defects.

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